St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1887-09-05
PLAYED OUT.
Collapse of the Boom in PennsyI-
vania Oil Wells.


PITTsBURG, Sept. 3.-In a few days
the Pennsylvania Oil fields will be vir-
tually idle. The producers are bank
rupt, and will shut off production as
last and desperate chance of relief. The
regions that have produced millions
upon millions of dollars worth of pc
troleum are little better Off than if the
golden fluid had never been discovered.
Sherlff'S sales are the most conspicuous
signs everywhere. Splendid residences
that were built by the lucky
Oil seekers in the palmy DAYS
before 'S5, are the only in
dications that prosperity once abided
with the Oil producer. Even those are
sadly out OF repair, and the once for
tunate owner, who found the roomy man
sion too small for his wealth, now dis
covers that he has a white elephant
on his hands and is content to occupy
ting out the remainder to dodgers. Men
who formerly had an income of S25, 500
and 5000 day from their wells now get
labOrer's wages. Many of the large
producers are running their wells at
loss. Hundreds of drillers, tool-dress-
erS, bumpers and carpenters are out of
work, because almost no new wells are
going down, and those now in opera
ton are worked in the most economical
manner possible. Wages have not been
SO low since oil was discovered. If this
depression continues for another six
months those still engaged in the oil
BUSINESS will quit it, as many hundreds
have already done. Speculation, too, is
paralyzed. Spectators have learned
by sad experience that, owing to the eX-
ceSslve storage charges, they must clear
% per cent. on their trades to come out
even. With the operator and driller,
they are engaging in other pursuits.
The magnificent Western Pennsylvania
exchanges, erected in the halcyOn DAYS
of dollar oil, are now little attended,
and in the vast emptiness the occasional
bidder is startled at the sound of his
own voice. The consumer for years has
been paying to the Standard Oil COM
pany for refined oil one-third more than
it would cost if the production and man
ufacture of oil followed natural laws.
The consumer has really enriched the
great oil monopoly more than the pro
ducer, but because the cost has been
lightly laid upon him individually, he
does not feel it. A few cents week
from each consumer makes millions of
dollars for the Standard. With no
excuse whatever, the Standard in
1878 put up the price of re-
fined oil from 16 to 80 cents a
gallon, and in 1880 it raised the
price from s to 10 cents. In both in
stances the purchasing price of the crude
oil remained the same. The Standard
buys at its own price and sells at its
own price. Other commodities are
''cornered'' occasionally, but oil is in a
chronic state of corner" Should the
Standard desire there is nothing to pre-
vent its putting the price of oil up to SO
cents gallon for at least six months, as
it would be that time before competition
could be developed to cut down the
price. 1t rules the home and foreign
trade alike. The Russian companies,
about which so much has lately
been written, will not be serious COM
petitors of the American monopoly for
several years, even supposing that the
quality of the oil is equal to the Penn
sylvania product, as the cost of produc-
ton and transportation in Russia by
present methods is too great to make
the business in that country profitable.